Enter the annualized rental income ($) and the net effects of amortization of lease incentives ($) into the Calculator. The calculator will evaluate the Net Passing Income. 

Net Passing Income Formula

NPI = ARI - NEA

Variables:

  • NPI is the Net Passing Income ($)
  • ARI is the annualized rental income ($)
  • NEA is the net effects of amortization of lease incentives ($)

To calculate the Net Passing Income, subtract the net effects on amortization

How to Calculate Net Passing Income?

The following steps outline how to calculate the Net Passing Income.

  1. First, determine the annualized rental income ($). 
  2. Next, determine the net effects of amortization of lease incentives ($). 
  3. Next, gather the formula from above = NPI = ARI – NEA.
  4. Finally, calculate the Net Passing Income.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

annualized rental income ($) = 15000

net effects of amortization of lease incentives ($) = 1000